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Commodities Brief – Precious metals pull back, supports in focus

Following a tight period of consolidation overnight, Gold prices pulled back again off of the 1646 mark before testing the 1642 region (slightly above initial support and the important 1640 barrier). However, the yellow metal has recovered slightly during European trading, as it operates above its 20 and 50-day MA Thursday. According to the Technical Analyst team at ICN.com, “the 1640.00-area is the potential reversal zone for a bullish harmonic Gartley pattern, while the completion of the pattern suggests a bullish rebound is imminent however. Thus, we will count on the pattern to cautiously expect an intraday bullish rebound.” Ultimately a move past the 1652 (February 13 high) level will be eyed as a confirmation of this trend. At the time of writing, gold prices have settled at USD $1643.98, trading negatively -$0.22 in these moments.

Silver has experienced a similar movement, ranging between the 30.87 – 30.78 region Thursday, however the point of emphasis was that the white metal has managed to avert a plunge below the 30.70 level, which is seen as a critical barrier, a loss of which could signal a prolonged decline. However, this was not the case Thursday, as prices bounced off the 30.78 mark to trade currently at USD $30.81, still operating negatively in these moments. Silver bulls are trying to cling to some upbeat movements as yesterdays marginal January Retail Sales, which saw the ETF iShares Silver (SLV) shed -1.10% Wednesday.

Crude oil seems to be a different breed all together Thursday, as it has had no problem finding its way during the onset of European trading. After gaining traction at the 97.00 region (initial support), crude prices managed to rebound and edge higher towards the USD $97.28 level at the present. This move comes as a welcome reprieve after a Wednesday session, which saw crude prices sharply dive off a piercing of the 98.00 area. The Technical Analyst team at ICN.com points to a tight stop and strong support being lent to crude at 96.55, a break of which could in the upcoming sessions lead to a downturn towards the 95.00 region (February 11 low) – ultimately however, a short-term bullish scenario is in effect.

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